BILL NUMBER: AB 2176	CHAPTERED  09/07/00

	CHAPTER   317
	FILED WITH SECRETARY OF STATE   SEPTEMBER 7, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 4, 2000
	PASSED THE ASSEMBLY   AUGUST 10, 2000
	PASSED THE SENATE   JULY 6, 2000
	AMENDED IN SENATE   MAY 24, 2000
	AMENDED IN ASSEMBLY   MARCH 28, 2000

INTRODUCED BY   Committee on Public Employees, Retirement and Social
Security (Correa (Chair), Pescetti (Vice Chair), Briggs, Firebaugh,
Honda, and Knox)

                        FEBRUARY 23, 2000

   An act to amend Sections 31625.3, 31720.6, 31722, and 31874.3 of
the Government Code, relating to county employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2176, Committee on Public Employees, Retirement and Social
Security.  County employees' retirement:  member contributions:
cost-of-living increases.
   The County Employees Retirement Law of 1937 generally provides
that contributions shall not be deducted from the salary of a member
who has 30 years of service credit, if the member was a member on
March 7, 1973.  In 3 specified counties, the board of supervisors may
elect to discontinue those deductions for any member who has 30
years of service credit.
   This bill would authorize the board of supervisors in any county
subject to that law to elect to discontinue those deductions for any
member who has 30 years of service credit.
   The County Employees Retirement Law of 1937 provides that the
development of cancer by a safety member, a firefighter member, or a
member in active law enforcement, as specified, shall be presumed to
arise out of and in the course of employment.  Existing law provides
a definition of known carcinogen, for the purpose of the above
provision, and provides that this presumption extends beyond the
termination of services, as specified.  Existing law requires that an
application for disability retirement be made within 4 months after
discontinuance of service.
   This bill would provide that, for the purposes of the above
provision, a carcinogenic agent recognized by the Director of the
Department of Industrial Relations shall satisfy the definition of a
"known carcinogen."  This bill would also extend the period for
making an application for disability retirement when the presumption
extends beyond the termination of service, as specified, and make
other technical changes.
   The County Employees Retirement Law of 1937 authorizes counties to
elect to provide supplemental increases to retirement and death
allowances, subject to certain limitations, when the annual increase
in the cost of living, as shown by a specified index, exceeds certain
amounts.
   This bill would authorize those counties to elect to provide an
alternative supplemental increase, on a prefunded basis, to
retirement and death allowances in those circumstances, subject to
specified limitations and conditions, and would make related
technical changes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 31625.3 of the Government Code is amended to
read:
   31625.3.  Notwithstanding any other provision of this chapter,
contributions shall not be deducted from the salary of any member who
was a member before or after March 7, 1973, of the retirement
association, another county retirement system established under this
chapter, or the Public Employees' Retirement System, and has total
reciprocal service credit of not less than 30 years in the retirement
association, or in the retirement association and another county
retirement system established under this chapter, or the Public
Employees' Retirement System, or a combination thereof.
   This section shall not apply in any county unless and until it is
adopted by a majority vote of the board of supervisors.
  SEC. 2.  Section 31720.6 of the Government Code is amended to read:

   31720.6.  (a) If a safety member, a firefighter, or a member in
active law enforcement who has completed five years or more of
service under a pension system established pursuant to Chapter 4
(commencing with Section 31900) or under a pension system established
pursuant to Chapter 5 (commencing with Section 32200) or both or
under this retirement system or under the Public Employees'
Retirement System or under a retirement system established under this
chapter in another county, and develops cancer, the cancer so
developing or manifesting itself in those cases shall be presumed to
arise out of and in the course of employment.  The cancer so
developing or manifesting itself in those cases shall in no case be
attributed to any disease existing prior to that development or
manifestation.
   (b) Notwithstanding the existence of nonindustrial predisposing or
contributing factors, any safety member, firefighter member, or
member active in law enforcement described in subdivision (a)
permanently incapacitated for the performance of duty as a result of
cancer shall receive a service-connected disability retirement if the
member demonstrates that he or she was exposed to a known carcinogen
as a result of performance of job duties.
   "Known carcinogen" for purposes of this section means those
carcinogenic agents recognized by the International Agency for
Research on Cancer, or the Director of the Department of Industrial
Relations.
   (c) The presumption is disputable and may be controverted by
evidence, that the carcinogen to which the member has demonstrated
exposure is not reasonably linked to the disabling cancer, provided
that the primary site of the cancer has been established.  Unless so
controverted, the board is bound to find in accordance with the
presumption.  This presumption shall be extended to a member
following termination of service for a period of three calendar
months for each full year of the requisite service, but not to exceed
60 months in any circumstance, commencing with the last date
actually worked in the specified capacity.
   (d) "Firefighter," for purposes of this section, includes a member
engaged in active fire suppression who is not classified as a safety
member.
   (e) "Member in active law enforcement," for purposes of this
section, includes a member engaged in active law enforcement who is
not classified as a safety member.
  SEC. 3.  Section 31722 of the Government Code is amended to read:
   31722.  The application shall be made while the member is in
service, within four months after his or her discontinuance of
service, within four months after the expiration of any period during
which a presumption is extended beyond his or her discontinuance of
service, or while, from the date of discontinuance of service to the
time of the application, he or she is continuously physically or
mentally incapacitated to perform his or her duties.
  SEC. 4.  Section 31874.3 of the Government Code is amended to read:

   31874.3.  (a) (1) Whenever the percentage of annual increase in
the cost of living as of January 1 of each year as shown by the
Bureau of Labor Statistics Consumer Price Index for All Urban
Consumers exceeds the maximum benefit increase provided in Section
31870, 31870.1, 31870.2, or 31870.3, whichever is applicable, the
board of retirement may provide that all or part of the excess
percentage increase shall be applied to the retirement allowances,
optional death allowances, or annual death allowances increased in
Section 31870, 31870.1, 31870.2, or 31870.3.  The board shall
determine the amount of the excess to be applied, which amount shall
not exceed an amount that can be paid from earnings of the retirement
fund that are in excess of the total interest credited to
contributions and reserves plus 1 percent of the total assets of the
retirement fund.
   (2) The supplemental increases in excess of the increases applied
to the retirement allowances, optional death allowances, or annual
death allowances pursuant to Section 31870, 31870.1, 31870.2, or
31870.3 shall not become a part of the retirement allowances,
optional death allowances, or annual death allowances to be increased
by subsequent increases under Section 31870, 31870.1, 31870.2, or
31870.3.
   (3) This subdivision shall be operative in any county that has
elected by a majority vote of the board of supervisors to make either
Section 31870, 31870.1, 31870.2, or 31870.3 applicable in that
county.
   (b) (1) The board of retirement may, instead of taking action
pursuant to subdivision (a), provide supplemental cost-of-living
increases, effective on a date to be determined by the board, to the
retirement allowances, optional death allowances, or annual death
allowances increased in Section 31870, 31870.1, 31870.2, or 31870.3;
provided however, that only those members shall be eligible for this
increase whose accumulations established by Section 31870, 31870.1,
31870.2, or 31870.3 shall equal or exceed 20 percent as of January 1
of the year in which the board of retirement adopts an increase under
this subdivision.
   (2) The supplemental increases to the retirement allowances,
optional death allowances or annual death allowances increased in
Section 31870, 31870.1, 31870.2, or 31870.3 shall not become a part
of the retirement allowances, optional death allowances or annual
death allowances to be increased by subsequent increases under
Section 31870, 31870.1, 31870.2, or 31870.3.
   (3) This subdivision shall be operative in any county that has
elected by a majority vote of the board of supervisors to make either
Section 31870, 31870.1, 31870.2, or 31870.3 applicable in that
county.
   (c) (1) The board of retirement may, instead of taking action
pursuant to subdivision (a) or (b), provide supplemental
cost-of-living increases, on a prefunded basis and effective on a
date to be determined by the board, to the retirement allowances,
optional death allowances, or annual death allowances increased in
Section 31870, 31870.1, 31870.2, or 31870.3; provided however, only
those members shall be eligible for this increase whose accumulations
established by Section 31870, 31870.1, 31870.2, or 31870.3 equal or
exceed 20 percent as of January 1 of the year in which the board of
retirement takes action pursuant to this subdivision.
   (2) The supplemental increases to the retirement allowances,
optional death allowances, or annual death allowances increased in
Section 31870, 31870.1, 31870.2, or 31870.3 shall become a part of
the retirement allowances, optional death allowances, or annual death
allowances and shall serve to reduce the accumulations established
by Section 31870, 31870.1, 31870.2, or 31870.3, as applicable, by the
same percentage as the payment that is made pursuant to this
section.
   (3) Before the board of retirement provides benefits pursuant to
this subdivision, the costs of the benefits shall be determined by a
qualified actuary and the board of retirement shall, with the advice
of the actuary, provide for the full funding of the benefits
utilizing funds in the reserve against deficiencies established
pursuant to Section 31592.2, using surplus earnings that exceed 1
percent of the total assets of the retirement system.
   (4) This subdivision shall be operative in any county that has
elected by a majority vote of the board of supervisors to make either
Section 31870, 31870.1, 31870.2, or 31870.3 applicable in that
county.
   (d) Upon adoption by any county providing benefits pursuant to
this section, of Article 5.5 (commencing with Section 31610) of this
chapter, the board of retirement shall, instead, pay those benefits
from the Supplemental Retiree Benefit Reserve established pursuant to
Section 31618.
